The Administrative Hearing Commission is a neutral, independent, administrative tribunal. Some of its cases are appeals from decisions of other State agencies. Others are cases that an agency or private person starts at the Administrative Hearing Commission.

The Administrative Hearing Commission has jurisdiction in over 100 statutorily specified matters including State tax, professional licensing, Medicaid provider issues, Highways and Transportation Commission actions relating to railroads and motor carriers, disciplinary actions against State employees, and the Individuals with Disabilities Education Act (IDEA). In fiscal year 2012, nearly 2,400 cases were filed at the Administrative Hearing Commission. The Administrative Hearing Commission makes decisions under contested case procedure, usually involving a trial-type hearing. The Commissioners do not sit as a body. Instead, each Commissioner hears evidence and arguments from the state agency and from the other party and decides a case as an individual. All such decisions are subject to judicial review.

The Administrative Hearing Commission also contracts with other agencies to assist in their decision-making processes. In such cases, the Administrative Hearing Commission conducts the proceedings, but makes only a recommended decision to the agency. The agency makes the final decision. The procedural law applicable to such cases is the law governing the agency, not the law governing the Administrative Hearing Commission.